The power equipment industry is witnessing accelerated growth, driven by the rapid scale-up of renewables, grid modernisation efforts and a stronger focus on sustainability. Demand for high-capacity transmission lines, digital substations and advanced technologies is reshaping the sector’s priorities towards efficiency and resilience. At the same time, challenges around clearances, supply chains and renewable integration remain. Against this backdrop, industry leaders share their views on the key growth drivers and emerging opportunities in the sector…
What is your assessment of the current state of the power sector?
Manish Agrawal
India’s power sector reflects an integrated journey from generation to distribution, with each link playing a critical role in delivering reliable electricity to end-consumers. On the generation side, the addition of multiple sources, from conventional thermal and hydro to rapidly expanding solar, wind and nuclear power, is enhancing diversity but also placing greater demands on the grid. Strengthening transmission and distribution (T&D) networks, enhancing capacity and ampacity, and reducing losses are key to unlocking greater efficiency, while automation and debottlenecking help ensure dynamic grid management.
Speaking of the current state of the sector, driven by landmark achievements that have reshaped it, India’s power sector is now at a crucial turning point, ready for the next stage of growth, expansion and modernisation.
Sharan Bansal
India’s power sector is witnessing one of its most dynamic growth phases. The country has consistently recorded peak demand levels above 250 GW, a reflection of the accelerating pace of industrialisation, urbanisation and digital transformation. The sector has matured beyond a narrow focus on generation alone, with attention now being firmly focused on T&D infrastructure. This shift is critical, as reliable grid expansion has become the backbone for integrating large volumes of renewable energy into the national system.
The National Electricity Plan has laid out a clear multiyear vision for capacity addition, and the government has been proactive in tendering large projects for addressing transmission bottlenecks. The build-out of 765 kV lines, high-capacity interregional corridors and high-voltage direct current (HVDC) links underscores the commitment to strengthening the grid. At the same time, advances in digital substations and smart grid technologies signal a parallel focus on efficiency and resilience.
What is particularly striking today is the broadening of the stakeholder base. Private players are increasingly participating across the value chain, and India’s position as a reliable, cost-competitive manufacturing hub is opening up new opportunities in global markets. With many developed nations facing ageing infrastructure, and with the “China+1” strategy influencing procurement decisions, Indian manufacturers are well placed to contribute to global grid modernisation. This confluence of domestic growth and export potential makes the present moment a rare “build-out super cycle” for the industry.
Udai Singh
India boasts a total installed power capacity of about 476 GW as of June 2025, with a notable share derived from renewable sources. Specifically, about 235.7 GW comes from non-fossil sources, including solar, wind and nuclear power, which collectively account for nearly 49 per cent of the total capacity. This comprises 226.9 GW of renewable energy and 8.8 GW of nuclear energy. Thermal capacity constitutes about 240 GW, representing 50.52 per cent of the total capacity. The power sector is experiencing robust growth in renewable energy, bolstered by government initiatives such as the green energy corridors, production-linked incentive (PLI) and viability gap funding schemes. The energy mix is becoming increasingly diversified, with renewables gaining substantial strategic importance, although coal remains a critical component.
Significant investments are being directed towards infrastructure development, facilitated by schemes such as PM Gati Shakti and Bharatmala Pariyojana 2.0. These initiatives are enhancing the integration of power with multimodal logistics and urban infrastructure. The expansion of transmission lines and substation capacities is progressing steadily, coupled with efforts to modernise the grid and improve infrastructure to meet demand and support renewable integration.
Discoms continue to play a pivotal role in the power sector but are grappling with financial stress. They face high aggregate technical and commercial (AT&C) losses of 12-15 per cent, along with issues of electricity theft. Initiatives such as smart metering and reforms under the Ujwal Discom Assurance Yojana aim to enhance billing efficiency and reduce losses, though challenges remain.
Arun Unni
India’s power sector stands at a remarkable inflection point. Nearly all of India has now been electrified, and the country is the world’s third largest producer of electricity. While coal continues to play a significant role in the energy mix, the real story today is the pace of clean energy adoption. India has already achieved over 50 per cent of its installed capacity from renewables, meeting its COP26 pledge ahead of time, and is also the world’s third largest solar energy producer. These milestones clearly demonstrate the sector’s ability to deliver at scale.
With more people connected, and with an increased use of electricity by consumers and industry, demand has been growing faster than anticipated. Meeting this demand while transitioning to renewables (including green hydrogen) has resulted in the need for alternative solutions and innovations in generation, transmission and distribution. In this regard, wind-solar hybrid projects providing round-the-clock (RTC) green power, battery and pumped-hydro storage solutions, and the expansion and optimisation of transmission and distribution networks are all gaining momentum..
In addition, alternative business models are emerging, such as utilities-as-a-service, where industries can access green power, steam, chilled water/cooling or treated/recycled water without capex. The transition is not just about megawatts – it is also about new business models.
Backed by ambitious national targets, policy support and industry-technology collaborations, the sector is on course to attract investments of over Rs 40 trillion in the coming decade.
Amit Uplenchwar
India’s power sector is at an exciting juncture, reflecting both strong growth and a clear shift towards sustainability. As of January 2025, the country’s total installed capacity stands at 466.26 GW, making India the sixth largest globally. The sector balances reliability with clean energy ambition: coal remains a significant contributor at 220.49 GW (47.29 per cent), while solar has grown rapidly from 66.78 GW in 2022-23 to 100.33 GW in 2024-25 – a 50 per cent increase – now accounting for 21.52 per cent of the total capacity. Wind and hydropower add 48.37 GW (10.37 per cent) and 46.97 GW (10.07 per cent) respectively, with oil and gas providing 25.41 GW (5.45 per cent) to support grid stability.
This diversified energy mix demonstrates India’s commitment to a cleaner, more resilient system. Investments in renewable energy, grid modernisation, and smart technologies such as energy storage and artificial intelligence (AI)-driven management are strengthening both sustainability and energy security. Although integrating solar and wind into the grid requires careful planning, India is steadily developing solutions to ensure a reliable and balanced energy supply. Overall, the sector is on a highly positive trajectory, positioning India to meet the growing domestic demand while emerging as a leader in the global energy transition.
What are the biggest unresolved challenges for the sector?
Manish Agrawal
While the sector has made remarkable progress, particularly in the T&D segment, the development of transmission lines and substations continues to fall short of planned targets. During 2017-22, only 81 per cent of planned transmission line additions and 91 per cent of planned substation capacity additions were achieved. This shortfall has largely continued in recent years, highlighting a persistent challenge in infrastructure expansion. In recent fiscal years, substation capacity additions achieved 96 per cent, 91 per cent and 77 per cent of the targets in FY 2023, FY 2024 and FY 2025 respectively. Transmission line additions followed a similar trend, achieving 100 per cent, 85 per cent and 58 per cent of the targets over the same period. The lag is typically attributed to delays in commissioning, land acquisition challenges, right-of-way issues, material supply constraints, and other operational issues. India has been driving notable momentum in energy transition; however, these lags underline a critical challenge – without matching transmission and substation growth, India risks bottlenecks in evacuating new capacity, particularly renewable power, and ensuring reliable, affordable and sustainable power at scale.
Discoms add another layer of strain. While Uttar Pradesh is often cited as an example of a state that has reduced transmission losses to just 3.2 per cent, many discoms across the country remain financially weak, burdened by cross-subsidies and delayed payments. At the same time, storage and flexibility remain key concerns. While the government has approved a 30 GWh battery energy storage scheme and launched initiatives to promote pumped hydro storage projects, this segment is still in its early stages of development.
Despite these challenges, India’s power sector has achieved remarkable progress and stands well-positioned for the future. Addressing gaps in transmission capacity, accelerating storage solutions and restoring the financial sustainability of discoms will be critical to unlocking the next phase of growth and ensuring that the energy transition delivers reliable, affordable and clean power to all.
Sharan Bansal
Even with strong momentum, several structural challenges continue to constrain the sector’s ability to deliver projects efficiently. The most visible bottleneck remains RoW acquisition. Project approvals and clearances vary significantly across states, often resulting in elongated timelines and cost escalations. Addressing this through time-bound, single-window mechanisms with measurable service-level agreements will be crucial for accelerating execution.
The financial health of discoms is another pressing concern. While reforms are under way, delayed payments and inefficiencies continue to stress the ecosystem. This impacts project developers, engineering, procurement and construction (EPC) players, and manufacturers alike. A more determined push towards loss reduction, direct benefit transfers and performance-linked grants is necessary to restore financial stability in the distribution segment.
The integration of renewable energy brings its own complexities. As India scales up solar and wind capacity, the grid must be strengthened with storage solutions, ancillary services and advanced forecasting tools. Without these, the variability of renewables risks undermining reliability. At the same time, manufacturers face challenges linked to input cost volatility, particularly in steel and zinc. A lack of timely cost pass-through mechanisms exposes the sector to avoidable financial stress.
Udai Singh
The financial instability of discoms, driven by under-recovery and high AT&C losses, continues to obstruct the essential investments and modernisation required for a clean energy transition. The integration of intermittent renewable energy sources into the grid presents significant technical challenges that necessitate comprehensive grid upgrades, advanced storage solutions and enhanced flexible generation capabilities.
The existing infrastructure lacks adequate real-time load balancing and forecasting tools. Modernisation is lagging, as current T&D systems require substantial upgrades to accommodate the rising demand and the growing influx of renewable energy. In particular, the grid must be prepared for the new energy landscape, addressing challenges such as DC injection, prosumer involvement, bidirectional energy flow and evolving load profiles.
The supply chain’s dependency on imports for critical components, including lithium and electrolysers, poses a risk to the pace of the energy transition. Therefore, initiatives like Make in India and Aatmanirbhar Bharat are imperative to sustain accelerated growth. Additionally, the penetration of digital technology and its adoption in rural and semi-urban areas remain insufficient.
For the future grid, a robust cybersecurity framework is essential to effectively manage distributed energy production and consumption.
Arun Unni
Despite strong progress, a few critical challenges remain in India’s clean energy journey:
- Scaling renewable capacity with reliability: While India has added significant solar and wind capacity, variability in generation makes firming power through storage and hybridisation essential. The industry needs policies that encourage large-scale adoption of wind-solar-battery hybrids to deliver RTC green power.
- Project execution hurdles: Land availability, grid connectivity and permitting remain sticking points that slow down renewable and waste-to-energy (WtE) projects. Simplifying processes can accelerate adoption.
- Skills and capability building: As multiple players set up increased capacity simultaneously, the limited availability of skilled project and engineering resources is becoming a constraint.
- Balancing low costs while supporting the domestic industry: The push for domestic self-sufficiency in solar, storage and electrolysers is a key pillar of our policy. Supporting the industry to deliver competitive costs will be crucial.
- Financing new energy models: Transitioning from capex-driven projects to opex/utility-as-a-service models requires innovative financing structures and risk-sharing mechanisms to attract investors.
Amit Uplenchwar
While India’s power industry has grown significantly, some challenges persist that must be addressed to maintain momentum and secure long-term investment. Financial stress among discoms continues to create uncertainty in payments and affects investor confidence. Meanwhile, integrating rapidly growing renewable energy into the grid remains a challenge due to limitations in large-scale storage solutions. Growth in transmission infrastructure is also lagging behind generation capacity, creating congestion and risks of underutilisation.
The transmission sector faces significant integration challenges as India scales up renewable energy. Hydropower, a vital balancing resource for renewable intermittency, remains underutilised due to environmental concerns and frequent project delays, limiting its contribution to grid stability. At the same time, interstate power trading mechanisms remain underdeveloped, restricting the efficient flow of surplus renewable energy across regions. Together, these gaps constrain the sector’s ability to deliver reliable, flexible and cost-effective power on a national scale.
What is your policy wish list for the government?
Manish Agrawal
Aligned with APAR’s commitment to delivering reliable and sustainable power for all, our policy recommendations focus on strengthening the industry and enhancing India’s global competitiveness.
Capitalising on existing transmission lines via reconductoring: Capitalising on current transmission lines and leveraging the existing infrastructure through reconductoring with high ampacity and low-loss solutions can result in significant time and space savings, while enabling the faster integration of renewable energy into the grid. While the Central Electricity Authority (CEA) and Power Grid Corporation of India Limited are actively promoting and implementing reconductoring to enhance grid capacity, with the CEA publishing a base paper on the reconductoring of transmission lines in the interstate transmission system, there remains a need to formalise a national reconductoring plan to systematically boost efficiency and support renewable integration across the network. With states adding large greenfield capacities, a policy ensuring the optimal use of existing transmission corridors is vital to optimise resources, reduce environmental impact and speed up project execution. Such an approach would also help diminish the impact or rule out persistent RoW challenges.
Enhanced thrust on reconductoring and T&D projects under the Power System Development Fund (PSDF): The PSDF, managed by the Central Electricity Regulatory Commission, is a critical instrument for strengthening India’s power infrastructure. It is imperative that the PSDF corpus is regularly replenished and progressively expanded to create a growing pool of resources for priority projects. A robust and expanding fund would accelerate initiatives such as reconductoring and broader T&D projects, improving grid reliability and facilitating the integration of increasing renewable capacity.
Fast-tracking free trade agreements (FTAs): While the Indian government has been actively advancing its trade agenda and recently concluded the UK FTA, building on this momentum with similar deals with the EU and South America could further enhance market access and boost conductor industry competitiveness.
Enhancing export competitiveness through RoDTEP: While the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme provides valuable support to exporters, the current rates are insufficient to fully offset the embedded taxes in India’s value chain. Strengthening the scheme would help Indian conductor and cable manufacturers remain globally competitive, safeguard market share and boost export potential.
Strengthening Make in India and nation-building initiatives by enhancing the minimum local content: High temperature low sag (HTLS) conductor manufacturing is a highly specialised, technology-intensive process involving advanced materials and precision engineering. To support the Make in India initiative and contribute to nation-building, a focused and time-bound approach is recommended to enhance the minimum volume of local raw materials and components in the production of HTLS conductors.
Policy support for Indian producers and exporters: Supportive policies for downstream aluminium products such as conductors and cables is essential to offset cost disadvantages, ensure a level playing field and enhance competitiveness. Measures such as tax incentives, value added tax refunds and the creation of an Indian metal exchange can help provide cost-efficient access to aluminium. Currently, Chinese producers benefit from Shanghai Futures Exchange prices, while Indian manufacturers rely on costlier London Metal Exchange rates with regional premiums, raising input costs.
Encouraging research and development (R&D) and technology adoption: There is need to support R&D, and promote the adoption of advanced technologies through incentives to enhance indigenous product quality and global competitiveness.
Sharan Bansal
From a policy perspective, the wish list is clear. A stable transmission pipeline over a five- to seven-year horizon would allow the industry to invest confidently in capacity and technology. Clear indexation mechanisms for input costs, as well as change-in-law clarity for both EPC and supply contracts, would de-risk project economics. In parallel, government incentives for domestic, integrated manufacturing (spanning design, fabrication, galvanising and tower testing) would reinforce India’s competitive edge. Finally, given the rapid urbanisation, enabling policies for monopoles, compact towers and underground cabling will strengthen distribution networks in congested areas.
Simplifying access to green finance, aligning environmental, social and governance disclosures, and lowering the cost of capital for grid investments would also create a healthier investment climate. Together, these measures would not only accelerate India’s domestic capacity creation but also strengthen the country’s position as a global exporter of grid solutions.
Udai Singh
To enhance the operational efficiency and financial health of the power sector, it is imperative to expedite discom financial reforms. This includes reducing AT&C losses. Promoting and incentivising smart grid technologies, predictive analytics, asset management, advanced metering infrastructure and other digital solutions can significantly enhance operational efficiency and reduce losses.
Supporting domestic manufacturing through initiatives such as PLI schemes and duty rationalisation can secure supply chains and reduce the dependence on critical component imports, especially those relevant for battery energy storage.
Facilitating faster regulatory approvals and land acquisition processes is essential to expedite infrastructure projects. Additionally, encouraging R&D, advanced storage and renewable integration technologies is vital. This includes the adoption of new technologies, such as the increased usage of sulphur hexafluoride-free switchgear, to support India’s sustainability journey.
Fostering public-private partnerships (PPPs) and engaging start-ups for innovative solutions in distribution, grid modernisation and green energy technologies is also key to advancing the sector.
Arun Unni
Policy wish list:
- Strengthen transmission infrastructure to enable hybrid projects and reduce curtailment.
- Create long-term green hydrogen purchase obligations for hard-to-abate industries.
- Expand the VGF and PLI schemes for emerging technologies such as electrolyser manufacturing, energy storage and WtE.
- Encourage PPPs in utilities-as-a-service to de-risk investments for industries transitioning to green energy.
- Support skilling and capability-building initiatives for renewable energy and related industries.
Amit Uplenchwar
To accelerate the energy transition, the government must implement comprehensive discom reforms beyond existing state-level initiatives, focusing on financial discipline, timely subsidy release and reduction of operational losses to ensure sector-wide viability. At the same time, fast-tracking environmental clearances for transmission and renewable projects through transparent, time-bound and single-window processes will be crucial to avoid delays in capacity addition. Parallelly, strengthening grid infrastructure with investments in transmission corridors, smart grid technologies and storage integration is essential to handle renewable intermittency and maintain reliable supply. Together, these measures will build a financially robust, environmentally sustainable and technologically resilient power sector.
What will be the key areas of opportunity over the next one to two years?
Manish Agrawal
The global push towards net zero, coupled with rising peak power demand, is driving an urgent need to integrate renewable energy sources into the grid while upgrading and modernising existing overhead T&D infrastructure. These shifts are creating a strong demand for advanced transmission solutions capable of handling higher loads, improving efficiency and enabling digitally smart grids.
Against this backdrop, there is significant scope for advanced conductor technologies such as APAR’s high ampacity, low loss (HALL) covered conductors, which, as the name suggests, are engineered for efficiency and reliability, and are designed to deliver higher current-carrying capacity with minimal transmission loss, thereby supporting a smarter, stronger and greener grid.
In addition, we foresee strong prospects for APAR’s optical phase conductors (OPPC), which seamlessly integrate power transmission and optical communication to deliver both data and power through a single system. These are ideal in situations where ground wires are absent, such as medium voltage or distribution networks, or in urban and space-constrained corridors where adding an optical ground wire (OPGW) is not feasible. Another opportunity area is OPGW fiberisation of existing transmission lines. While many utilities have already implemented fiberisation at the 132 kV level across numerous networks in India, there is substantial potential at 66 kV and higher voltages up to 765 kV. This can even be implemented on live lines, enabling utilities to strengthen communication networks without service interruptions, and will play a pivotal role in making the grid robust, future-ready and smart. With increasing telecom density, there is tremendous potential for deploying high-fibre OPGW solutions.
Investment landscape
India’s power transmission sector is on the cusp of a transformative boom. With the government committing over Rs 9 trillion towards grid expansion by 2032, the country is rapidly moving towards a modern, high-capacity and technology-driven power transmission network.
The global energy transition is also placing significant pressure on transmission infrastructure, making grid expansion one of the most urgent priorities. Investments in transmission networks rose by 10 per cent in 2023, touching nearly $140 billion, but this remains well below the levels required to meet long-term climate and clean energy goals. Overall, a recent International Energy Agency report estimates that global transmission spending must more than double by the 2030s to stay aligned with national and international climate targets.
These trends create strong tailwinds for the deployment of advanced conductor technologies and smart grid solutions. With over six decades of experience, and a footprint in more than 140 countries, APAR Industries Limited is uniquely positioned to deliver solutions that address these evolving needs. As the world’s largest aluminium conductor manufacturer, APAR provides products that enhance ampacity, efficiency and network longevity – from HALL, OPPC and OPGW to HTLS and medium voltage covered conductors – serving as the most critical link in the power T&D value chain.
Further strengthening this portfolio is APAR’s range of ESG-driven green products, designed to improve efficiency and reduce the carbon footprint. These include continuous transposed conductors for lower electrical losses and higher transformer efficiency, paper-insulated copper conductors for longer lifespan and reduced maintenance, and ACCC-ULS conductors, which deliver up to 29.5 per cent lower I²R losses compared to traditional conductors while transmitting 2.4x more power.
By combining technical innovation with practical expertise, APAR enables utilities and developers to keep pace with the growing demands of the energy transition, both in India and globally.
Sharan Bansal
Looking ahead, the opportunity landscape is both wide and immediate. The most visible demand driver will be renewable energy-linked transmission projects. The Khavda renewable energy hub in Gujarat and other interregional corridors are already generating large tenders for HVDC and 765 kV lines. These will dominate the tendering pipeline for the next two years, creating a strong execution runway.
Simultaneously, there is an urgent need to modernise and digitalise substations. Investments in static synchronous compensators, upgraded protection systems and brownfield uprates are growing as grid operators seek resilience and efficiency. Skipper and other integrated players are positioning themselves strongly in this segment, recognising its role in improving overall system reliability.
On the global front, the export opportunity is striking. The US, for example, is preparing for large-scale grid renewal in response to ageing infrastructure and rising electrification loads. The broader Asia-Pacific region is also expanding capacity to meet industrial and urban growth. Indian manufacturers, with their ability to deliver at scale, cost-effectively, and with integrated testing capabilities are well positioned to supply to these markets.
Domestically, the rise of urban centres and data-driven economies adds new layers of demand. Data centres and AI clusters require dedicated transmission and substation capacity, creating niche opportunities. Likewise, compact monopoles and distribution upgrades in urban corridors will be critical for reliability and safety.
For companies like Skipper Limited, this moment is about aligning strategy with these growth vectors. We are doubling our manufacturing capacity, scaling up our tower and pole testing facilities, expanding substation EPC services and strengthening our export base. Backed by a record order book and disciplined capital allocation, Skipper is committed to playing a leadership role in this evolving ecosystem.
Udai Singh
As discoms advance their digitalisation initiatives, the implementation of smart meters and advanced metering infrastructure is poised to play a pivotal role in enhancing billing accuracy and reducing losses. Furthermore, modernising the grid to ensure robust cybersecurity is imperative. This involves substation automation, smart distribution transformers, digital grid applications and predictive analytics for real-time asset management.
Additionally, integrating energy storage systems with renewable energy sources will address intermittency issues and bolster grid stability. The effective management of distributed energy resources, such as rooftop solar installations, electric vehicle charging infrastructure and microgrids, is also crucial.
Moreover, upgrading rural electrification infrastructure and implementing smart metering in underserved areas will significantly expand access to reliable power. Finally, engaging in green hydrogen and hybrid energy system projects will propel India’s energy transition and sustainability goals.
Arun Unni
The key opportunity areas in the next one to two years include:
- Innovative renewable energy models: Demand for RTC clean energy is creating opportunities for hybrid projects, combining wind, solar and storage. Utilities and industries are exploring opex-based green power solutions, which Thermax is actively developing.
- Use of integrated WtE, bio-compressed natural gas (CNG) and associated services: The use of municipal waste not just for power but also for bio-CNG will emerge as a mainstream opportunity for industries and mobility. Thermax Bioenergy Solutions Private Limited, a wholly owned subsidiary of Thermax, is building turnkey plants that integrate technology and EPC capabilities.
- Green utilities-as-a-service: Industries increasingly want reliable green power, steam, chilled water and other utilities without owning the infrastructure. Build-own-operate models will gain momentum, allowing customers to decarbonise without upfront investments.
- Green hydrogen: Early projects are gaining shape, especially for refineries, fertilisers and steel. Thermax’s localisation of high-pressure alkaline electrolysers, advancements in solid oxide electrolyser systems and partnerships with global technology leaders position us to support industrial customers as demand scales.
- Digital integration: The digitalisation of utilities, from predictive maintenance to real-time emission tracking, will be an essential enabler of efficiency, transparency and compliance.
Amit Uplenchwar
The National Electricity Plan has set an ambitious target of 609 GW of installed capacity by 2031-32, including 500 GW of non-fossil fuel capacity by 2030, creating vast opportunities across the power sector. Meeting the forecast peak demand of 277.2 GW by 2026-27 will require large-scale energy storage projects to ensure reliability and flexibility. Significant potential also lies in grid modernisation and smart grid solutions to integrate variable renewables efficiently. The plan further opens up avenues for green hydrogen production, offshore wind development (with scope for a dedicated PLI scheme), and expansion of electric vehicle charging infrastructure powered by clean energy, positioning India as a leader in sustainable power and energy transition. To achieve these ambitions, the sector requires an estimated investment of Rs 33.6 trillion ($384.5 billion) over the next decade, presenting massive opportunities for private players and foreign investors under India’s 100 per cent foreign direct investment policy in the power sector.
(Mr Udai Singh’s above views and opinions have been expressed in his personal capacity and do not reflect the official policy or position of Schneider Electric.)
